Tax system must listen and adapt for First Nations communities

Media release. Monday, 6 July 2026

Marking the beginning of NAIDOC Week celebrations, the Tax Ombudsman has called for more accessible and culturally safe tax support for First Nations communities.

Tax Ombudsman Ruth Owen said as part of her systemic review underway into ATO engagement with First Nations taxpayers, she had heard the tax system is too hard to navigate for some First Nations people and small businesses.

“NAIDOC Week celebrates the strength, leadership and achievements of Aboriginal and Torres Strait Islander peoples. That should include listening and acting on feedback received,” Ms Owen said.

The Tax Ombudsman said First Nations people faced unique challenges when trying to engage with the tax system due to a combination of: remote locality, limited technology access, lack of tax education and literacy, and historic mistrust of government.

“We have heard clearly that many First Nations taxpayers and small businesses face avoidable barriers when they try to engage with the tax system – to get help, understand their rights or meet their obligations,” Ms Owen said.

First Nations communities have said that more support is needed to help people to engage with the ATO, including face-to-face, culturally safe support delivered through First Nations organisations they know and trust.

“Aboriginal Community-Controlled Organisations, tax clinics and financial counsellors are often the bridge between First Nations people and the tax system but their coverage is not enough to meet the demand that is out there. They also need easier pathways to work with the ATO on behalf of the people they support,” Ms Owen said.

The Tax Ombudsman said the review had also identified that ATO administrative processes did not recognise First Nations kinship, family and community structures. “I’ve heard proof of record ownership and identity processes can make it harder for First Nations people and their support networks to engage with the tax system and get timely help,” Ms Owen said.

She also said awareness of the ATO’s Indigenous Helpline was low, and those that used it described long wait times, transfers and inconsistent outcomes across ATO service channels.

“A fair tax system is one which all people can understand, use and trust. For First Nations taxpayers and small businesses to engage, there must be culturally safe, practical and accessible tax support tailored to their unique needs,” Ms Owen said.

The Tax Ombudsman said worryingly, she’d also heard about poor advice, missed claims and identity misuse from predatory tax operators looking to exploit First Nations taxpayers.

“We will be exploring with the ATO and Tax Practitioners Board what opportunities there are to crack down on predatory agents targeting First Nations communities,” Ms Owen said.

First Nations taxpayers, small businesses and the people who support them are encouraged to contribute to the review, with consultation underway until 4 September.

“People can attend one of our yarning sessions being held in the coming weeks, complete a short survey, make a submission or get in touch to have a yarn by phone. Every contribution will help to shape practical recommendations we will make to the ATO.

“The message this NAIDOC Week is clear – listening is not enough. We must use the feedback we have heard to adapt how the tax system works, leading to safer access, better services and real change for First Nations taxpayers and small businesses,” Ms Owen said.

The Tax Ombudsman’s review will be completed by the end of the year.

For more information, visit Review: ATO engagement with First Nations taxpayers

Media contact

Emma Collien. Director, Communications.

Phone: (02) 8239 2190

email: [email protected]